Fuel marking improves tax collection efficacy

Government’s fuel marking program has resulted in increased tax collection, proving the program’s efficacy against illegal trade activities, according to Finance Secretary Carlos Dominguez III. 

“Increase in revenue collection from fuel importation is the best indicator of the program’s success,” Dominguez pointed out. 

“Smuggling means those bringing in fuel are not paying taxes. Increase in collection from fuel importation means that those importing fuel are now declaring them and paying taxes,” he added. 

The Department of Finance (DoF) said the fuel program brought in P147.47 billion in additional revenues for government. Since its implementation, the program has recorded a total of 14.63 billion liters of fuel as of October 29, 2020.

Bureau of Internal Revenue excise tax collection from December 2019 to 29 October 2020 amounted to P19.88 billion, while the Bureau of Customs collected P127.59 billion from September 2019 to 29 October 2020. 

Majority (61.79%) of the marked fuel was diesel followed by gasoline with 37.69% and kerosene for the remaining 0.52%. 

Luzon recorded the highest concentration of marked fuels at 74.1% of the overall volume, while Mindanao and the Visayas accounted for 20.9 and five percent, respectively.